Industrial scenario at the time of independence: An overiew

India's economy is traditionally agrarian. During the British period agriculture both agrarian and non-agrarian sectors were in a bad shape. The non-agriculture sector was not only small but also had a very unbalanced structure. Modern industrial enterprises had started taking root in India in the latter half of the 19th century. Some worthwhile progress in this direction could be made only after 1875. The partition of the country in 1947 was bound to, as it did, affect in a significant way the economy as well. This paper is an attempt to explore the industrial situation at the time of independence and also explain the impact of World War and Partition on industrial development of the country. For this study a descriptive-analytical research methodology is applied. The study reveals that at the time of independence industrial sector was in a pity situation. World Wars and Partition of the country worsened this situation. At that time apart from other problems Indian industries were facing the problem of finance. There was an urgent need of such type of financial institution which can provide finance to industries in easy terms and conditions, so IFCI, the first financial institution of the country was established in 1947 to meet the financial needs of industrial sector in the country.